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Case-Shiller index: 'Glimmer of hope' as home prices rise slightly

October 25, 2011 | 7:10
am

The closely watched Case-Shiller index of home prices in American cities rose slightly in August from the prior month.

Prices of previously owned single-family homes rose 0.2% in August over July, according to the Standard & Poor's/Case-Shiller index of 20 metropolitan areas. The index dropped 3.8% from the same month a year prior.

“We see a modest glimmer of hope with these data,” David M. Blitzer, chairman of the index committee at S&P Indices, said in a statement.

Ten out of the 20 metro areas covered by the index saw home prices rise over the prior month.

The Midwest has made gains in recent months, and Chicago and Detroit were both up 1.4% over the prior month. Washington, D.C., also has fared better than other regions and gained 1.6% over the prior month.

The monthly rise in the 20-city index made for the fifth consecutive month of gains. Earlier this year, the index dropped below its previous bottom, hit in April 2009, confirming a double dip in prices, but has come up above that since. Some economists predict a renewed decline in prices in fall and winter.